COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

South Dublin County Council Crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, January 15, 2018

HEADED ITEM NO.9

HEADED ITEM: A. of Land Use, Planning & Transportation

INDEXATION OF DEVELOPMENT CONTRIBUTION SCHEME

Section 48 Development Contribution Scheme

The Council’s Section 48 Development Contribution Scheme 2016-2020 adopted by the Council at its meeting on 14th December 2015 included the following provision:-

Indexation in accordance with the Tender Price Index may be applied to be effective from 1st January 2018 for permissions granted after this date, having regard to the prevailing economic circumstances, subject to the approval of the Council.

The current levy rates are:-

Residential Development                                 € 85.06 per sq metre

Industrial/Commercial Development                 € 75.00 per sq metre

Levies collected under the Section 48 Scheme fund the following classes of infrastructure and facilities

Class of Public Infrastructural Development

Class 1: Roads infrastructure & facilities

Class 2: Surface Water & Environment infrastructure & facilities

Class 3: Community facilities & amenities  

Class 4: Parks and open spaces facilities & amenities

Class 5: Economic, Enterprise and Tourism Development including Libraries

 

The basis for applying this increase is that construction tender prices have risen steadily since their lowest point in 2010, the annual rate of increase was 5.6% in 2016 with an increase of 6.3% for 2017. These increases will bring construction prices back to the level they were at in 2004 and are largely due to the increased level of activity in the industry. Exchange rate fluctuations between the Euro and Sterling have also increased the cost of some materials and pressure for wage increases in the industry have also driver higher tender prices.

Recommendation

With the approval of the Elected Members, an indexation rate of 6.3 % will be applied to the scheme and become effective on permissions granted after 1st January 2018. This will increase the levy as follows:-

Residential Development                                 € 90.95 per sq metre

Industrial/Commercial Development                 € 79.70 per sq metre